Cutting Inventory Costs

Customers frequently complain about the difficulty knowing what they have and where it is. Manual systems break down because people just forget to write it down or it gets copied incorrectly when entered into the computer. These systems have the most trouble during busy times when the priority is on moving materials around. Picking for shipping or clearing the production floor and getting finished goods into the warehouse take priority and the location information just doesn’t get recorded.

Using RFID and barcode can greatly reduce the time involved in capturing the data and RFID portals can completely eliminate the human element. When hand scanning is used, adding portals at key choke points are a great way to add an “audit” feature. The portals will capture everything passing through and an exceptions report quickly highlights any items moved through the choke point that lack a proper “put away” or “move” transaction in your WMS (warehouse management system) ERP system.

Tracking your inventory lets you reduce double ordering and spoilage. Simply tracking inventory has been estimated to reduce shrinkage by 5-10%. Less inventory means less space needed, lower insurance costs, and less personnel hired specifically to search for product. (You are not alone – a lot of companies have these “searchers”!)